Emergency exit is used to preserve the funds in each strategy when something goes wrong.
When some of the thresholds of strategy that we are constantly monitoring takes place we need to act fast to preserve the funds invested in that strategy. That is why Brokkr has an “Emergency action plan” that we use in these scenarios.
Funds of the strategy are withdrawn from the strategy and/or rebalanced to other strategies within the same portfolio.
Threshold we are constantly monitoring:
- Strategy TVL
- Price of tokens used in strategy
- Malicious governance proposals; like sudden increase in total supply of tokens
- Protocol in use gets hacked
- Protocol in use gets exploited